Re: [CANSLIM] Know your exit before you enter

From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] Know your exit before you enter
Date: Wed, 27 Aug 2003 12:15:20 -0700

Next Article (by Subject): Re: [CANSLIM] Know your exit before you enter michael_niemotka@baxter.com
Previous Article (by Subject): Re: [CANSLIM] Know your exit before you enter "Dan Forant"
Top of Thread: RE: [CANSLIM] Know your exit before you enter "Krueger, Kevin"
Next in Thread: Re: [CANSLIM] Know your exit before you enter michael_niemotka@baxter.com
Articles sorted by: [Date] [Author] [Subject]

Hi Tomas:

IMHO, identifying a pre-determined profit, and selling a stock automatically
once it reaches that level, flies in the face of CANSLIM. The whole point of
listening to the market, and letting the tape tell you which stocks to trade
(and when) is very reactionary, and falls under the age-old classic mantra
'the trend is your friend'.  Why would anyone arbitrarily sell a breakout
stock after a small 20% profit in a strong bull market? It makes no sense
whatsover.  Given that many stocks are up 400%+ since the market turn on
March 12, you would be defeating the entire purpose of patiently wating for
a confirmed bull market and then riding breakout leaders.

I think that some people confuse this with having a target 'stop' sell in
mind immediately after buying a stock. Making sure you know exactly when you
will sell if the trade turns against you is essential risk management. But
it isn't something you should do if the trade is working in your favour.

Ian









- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.